Code of measuring practice

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Reference no: EM13247084

QUESTION 1

Summarise the provisions and purpose of the RICS Valuation - Professional Standards (the Red Book) and briefly discuss the benefits and difficulties you consider it gives rise to. You may illustrate your answer with examples, but the identity of the parties concerned should not be disclosed or readily identifiable.

QUESTION 2

Write an executive summary for the managing director of a small private investment company, describing the office property market in the nearest town to the area where you work.

QUESTION 3

Your client has recently inherited a small portfolio comprising three shops with flats above, a multi-let office building and an industrial unit. She has been looking at reports from the previous managing agent and is concerned about the basis of measurement applicable to each for letting and insurance purposes. Based on the work undertaken for Unit 4, Activity 2:

a. Explain the rationale for the use of the Code of Measuring Practice when carrying our valuations for rental and insurance purposes.

b. Explain the principles involved in calculating the floor area of a retail shop unit for rent review purposes.

QUESTION 4

a. Provide the analysis of the properties in Summer Road that you undertook in Unit 4, Activity 5, together with a brief explanation of the adjustments or assumptions you made.

b. Value the freehold interest in the retail property unit analysed in Unit 4, Activity 3. It is currently let on a full repairing and insuring (FRI) lease, with five-yearly rent reviews, at a rent of £125,000 per annum with three years to run to the next rent review. The current rental value is £140,750 per annum; market evidence suggests a yield of 6%.

QUESTION 5

A valuation is only as good as the comparable evidence used. Therefore, rigorous analysis and consistent validation of the comparable data collected is as important as the mathematical formula used in any valuation. Discuss this statement.

Reference no: EM13247084

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Code of measuring practice : Explain the rationale for the use of the Code of Measuring Practice when carrying our valuations for rental and insurance purposes and explain the principles involved in calculating the floor area of a retail shop unit for rent review purposes.
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